Overview: Profitability ratios are a group of quantitative values that measure a company’s profitability against its revenue, cost of sales, equity, and balance sheet assets. It is a metric that measures a company’s ability to generate income from its operations over...

Profitability Ratios are the group of Financial Ratios that use for assessing and analyzing the entity’s profitability through various ratios. The areas that these ratios focus on are sales performance, costs management, assets efficiency, and sometimes cash...